STOCK-BASED COMPENSATION

6 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

6. STOCK-BASED COMPENSATION

Stock Options

The following table summarizes stock-based compensation expense for the three and six months ended December 31, 2021 and 2020: 

	Three Months Ended December 31,				Six Months Ended December 31,
	2021		2020		2021		2020
Cost of Goods Sold	$	28,415	$	11,233	$	56,830	$	22,466
Research and Development		50,310		19,435		93,799		36,360
Selling, General and Administrative		251,726		126,411		339,893		169,399
Stock Based Compensation Expense	$	330,451	$	157,079	$	490,522	$	228,225

No compensation has been capitalized because such amounts would have been immaterial.

The following tables summarize stock option activity for the six months ended December 31, 2021: 

	Options Outstanding
	Number of Shares			Weighted Average Exercise Price	Weighted Average Contractual Life
Outstanding at June 30, 2021	2,578,200		$	1.13	6.73 years
Exercised	(18,500	)	$	1.00
Granted	190,000		$	1.07
Cancelled	(80,000	)	$	0.94
Outstanding at December 31, 2021	2,669,700		$	1.22	6.58 years

Information related to the stock options outstanding as of December 31, 2021 is as follows: 

Range of Exercise Prices		Number of Shares		Weighted- Average Remaining Contractual Life (years)		Weighted- Average Exercise Price		Exercisable Number of Shares		Exercisable Weighted- Average Exercise Price
$	0.48		60,000		4.25	$	0.48		60,000	$	0.48
$	0.50		80,000		4.47	$	0.50		80,000	$	0.50
$	0.55		36,500		2.64	$	0.55		36,500	$	0.55
$	0.70		100,000		6.59	$	0.70		100,000	$	0.70
$	0.73		690,000		5.01	$	0.73		690,000	$	0.73
$	0.85		6,000		1.01	$	0.85		6,000	$	0.85
$	0.90		36,000		2.44	$	0.90		36,000	$	0.90
$	1.20		200,200		0.17	$	1.20		200,200	$	1.20
$	1.25		45,000		8.22	$	1.25		15,000	$	1.25
$	1.30		441,000		7.45	$	1.30		291,520	$	1.30
$	1.40		70,000		8.88	$	1.40		70,000	$	1.40
$	1.42		100,000		7.70	$	1.42		66,667	$	1.42
$	1.45		5,000		9.19	$	1.45		–	$	–
$	1.50		70,000		7.94	$	1.50		70,000	$	1.50
$	1.68		540,000		9.43	$	1.68		270,000	$	1.68
$	2.26		190,000		9.88	$	2.26		90,000	$	2.26
	1.22		2,669,700		6.58	$	1.22		2,081,887	$	1.10

The aggregate intrinsic value of the Company’s in-the-money outstanding and exercisable options as of December 31, 2021 was $2,564,065 and $2,119,321, respectively.

Restricted Common Stock Granted

Effective November 17, 2021 the Company granted an employee hired as part of the Lighthouse Imaging, LLC business acquisition 50,000 shares of restricted common stock vesting one-third on the first three one-year anniversary dates of his date of hire, or October 1, 2022, 2023 and 2024, at which time the vesting portions of the shares shall be issued to the employee. A total of $113,000 of compensation expense was assigned as of the grant date, which will be recognized as stock based compensation expense over the vesting period. Stock based compensation expense for the three months ended December 31, 2021 includes $9,417 relating to these restricted common stock shares.

Common Stock Issued for Services

In December 2021, the Company issued 9,045 shares of its common stock to its Chief Financial Officer as compensation for services performed. The company recognized $20,000 of stock based compensation expense during the three months ended December 31, 2021 relating to these common stock shares.